USD/JPY extended losses

USD/JPY extends losses for a second day in a row. Today the pair touched a 3-week low at 100.45, but then recovered to 100.70. The yen rose as domestic shares plunged and data showed that Japanese investors were net sellers of foreign debt for a second week in a row.

Nomura: Japanese stocks have collapsed and the yen strength is consistent with that. We’ve come a long way in terms of yen-dollar weakness and some of that is being given back.

From a technical viewpoint, a slide below the 100.70 support opens the way for a deeper correction, which can even extend below the 100.00 mark. Credit Suisse specialists expect a slide into the 99.95/45 area.